MEMBERS PRESENT: John McLemore (Chair), Michael Burns, Don Gage, Jim Hartnett, Arthur Lloyd, Sophie Maxwell(arrived 10:20a.m.), Michael Nevin, Ken Yeager

MEMBERS ABSENT: None

MTC LIASON: Sue Lempert

STAFF PRESENT: Michael Scanlon, David Miller, Roger Contreras, Howard Goode, Chuck Harvey, Rita Haskin, George Cameron, Ian McAvoy, April Chan, Martha Martinez, Jennifer Buhr

Chair McLemore called the meeting at 10:06 a.m. and led the Pledge of Allegiance to the flag.

Jose Cisneros (San Francisco) was given the oath of office by board secretary.

PUBLIC COMMENT

Francis Wong, Mountain View, commended staff and the timely activation of the CTC signaling system in response to the unfortunate gas leak in Mountain View this past Monday.

Andy Chow, Redwood City, stated that he is concerned with the recent political discussions between BART and SamTrans and the shortfalls with the SFO extension. Mr. Chow does not agree with the comments that there is not enough ridership on BART because Caltrain fares are too low and he doesn't think the blame should be put on Caltrain and SamTrans. Mr. Chow also commended staff for their quick response to the gas leak on Monday.

Doug Delong, Mountain View, commended staff for putting signs on the Ticket Vending Machines (TVM) notifying customers of the expiration of tickets. Mr. Delong also noted the improved functioning of the lavatories on-board the trains.

Jeff Carter, Burlingame, commented that recently in the newspaper, BART said that Caltrain riders pay $1.75 less than BART riders do. However, Mr. Carter stated that to get to Millbrae from the same place on both systems, Caltrain riders pay 70 cents more. Mr. Carter stated that BART is also making an issue about how in just nine months they are carrying the same number of riders as Caltrain. However, Mr. Carter noted that since BART runs more trains than Caltrain, it is clearer by looking at the number of riders per train. Regarding the poor performance of the system, the 1996 report of the BART/SFO extension stated that there would be 76,000 riders using the extension in the year of opening, which many public advocates claimed it would not and Mr. Carter stated they were right. Mr. Carter feels that Caltrain should refute some of the tactics by BART.

CONSENT CALENDAR

The Board unanimously approved, by roll call, the following items under the Consent Calendar:

1. Adoption of Minutes of March 4, 2004
2. Statement of Revenue & Expenses, February 2004

CHAIRPERSON'S REPORT

Chair McLemore reported:

• The draft Environmental Impact Report (EIR) for Caltrain electrification was distributed last week. Currently four public meetings are scheduled in San Francisco on April 22, in Sunnyvale on April 24, in Morgan Hill on April 28 and in San Carlos on May 1.
• On April 17 and 18, the South Bay Historical Railroad Society will be presenting its 2004 model train show and open house at the historic Santa Clara Depot.

MTC LIAISON REPORT (SUE LEMPERT)

Ms. Lempert reported:

• MTC unveiled a new very successful program, 511, last week. 511 is a voice-activated system for directions, to find out about accidents and traffic, etc. 511 is currently running for the East Bay and after May will apply to the bridges and Highway 101.

REPORT OF CITIZENS ADVISORY COMMITTEE (CAC)

Gerald Graham reported on the last CAC meeting:

• There was concern from the CAC because they felt they were bypassed with the train-wrapping project. In the meantime, the CAC was invited to view some sample wraps. From a brief poll, there is a 50/50 response for and against the wraps. There is concern with the wrap covering the window because it obscures the view.
• There was a meeting with a senior official of the Sacramento RT Metro. Their new cars are not going to be wrapped and the old cars will have their wrap removed when they are repainted.
• The CAC requested clarification as to whether BART is going to stop charging for parking. The CAC also questioned if there will be 24-hour parking available for those traveling from the airport.

Mr. Graham responded that several months ago the CAC endorsed Option A. However, that was before Option D was available.

REPORT OF THE EXECUTIVE DIRECTOR

Michael J. Scanlon reported:

• According to his recollection the CAC did endorse the weekday schedule but did not take a position on the weekend schedule because there were disparate views.
• Welcomed Jose Cisneros to the board of directors.
• Chair McLemore and Mr. Scanlon recognized George Erickson, retiring General Manager of Amtrak, and presented a Proclamation of Appreciation.
• The coveted Hard Hat award was presented to Jim Hartnett who took his train tour on March 29, which was the day of the gas leak in Mountain View. Mr. Hartnett stated that there was a tremendous amount of coordination among all staffs during the extraordinary circumstance.
• Key Caltrain Performance Statistics:
1. February ridership went from 626,212 to 593,952 riders, a 5.2 percent decrease.
2. February average weekday ridership was down 5.5 percent, from 26,245 weekday riders to 24,793.
3. February total revenue was off 9.9 percent from $1.57 million to $1.41 million.
4. On-time Performance decreased 9.5 percent with 88.6 percent for February.
5. February shuttle ridership had an increase of 11.2 percent with 4,060 riders, up from 3,650.

• Chuck Harvey, Chief Operating Officer, introduced Jay Commer who is currently the acting General Manager working for Amtrak.
• Mr. Harvey made a presentation in regard to On-time Performance, which highlighted that some of the delays were due to the CTX construction, single tracking, signal system problems and trespasser fatalities.
• The Lawrence Station opening was on March 5.
• The Bayshore Station opening was on March 22.
• In regard to the Tamien upgrade project, where some signal tracking took place, Tamien went from being one of the worst crossings to one of the best. The City of San Jose was very helpful with this project.
• On March 26 there was an injury accident at San Mateo Station. The man was struck but suffered only treatable injuries.
• The Baseball service starts tonight, April 1.
• At the Santa Clara Depot Open House, April 17-18, a Baby Bullet consist will be on display. The Depot will be celebrating its 140th anniversary that weekend as well.
• The Monthly Safety and Security Report was distributed.
• Chief Development Officer, Howard Goode, is retiring. Mr. Goode has agreed to work part-time throughout the remainder of this year to assist with the reauthorization of Measure A and the close-out of the CTX construction contracts. Mr. Goode is also helping with the BART/SamTrans negotiations. Effective Monday, April 5, Ian McAvoy will be the Chief Development Officer.

ADOPTION OF CALTRAIN SERVICE LEVELS

Chuck Harvey, Chief Operating Officer, made a presentation on the Caltrain service levels post CTX, including the Baby Bullet. The presentation highlighted the overview of the proposed service levels, a review of the compelling objectives, an overview of the public process, comments and revisions due to the public hearing in February, staff recommendations and what the next steps of the project would be. The major changes in the service included eliminating large transitional gaps in service through "memory" departures, maintaining traditional work start times, adding 12 midday stops at San Antonio station, adding six reverse peak stops at Santa Clara station, adding one limited stop train at Atherton. Additionally, there has been continued coordination with BART, VTA, SamTrans, Muni, ACE, Capital Corridor to facilitate transfers. In summary, the proposed service levels will increase weekday peak service by ten trains, reduce end-to-end runtimes by up to 39 minutes and increase Sunday service with the weekend options. Mr. Harvey also reported that with the CTX project, system reliability has improved with the redesign on many holdout stations, installation of Mini-high platforms at Baby Bullet stations and by having a Centralized Traffic Control System. The staff intention is to return weekend service and to begin Baby Bullet service in June 2004. Mr. Harvey reported that operating efficiencies allow for these increased service levels.

Director Gage questioned what the differential in cost is between weekend options C and D.

Mr. Harvey responded that there is not a cost difference between the options.

Director Gage reported that in Gilroy, riders were wanting a 15-minute adjustment for the Gilroy service. Eventually, when the service starts to resume and when there are five or ten trips a day, Director Gage thinks there will be more flexibility. Director Gage stated that it is more important for the Gilroy riders to get to the valley rather than the city.

Mr. Harvey responded that based on the Origin and Destination studies that were conducted, only about 10 or 15 percent of Gilroy train riders travel north of Palo Alto. As more trains are added, staff will be able to close the service gaps. Mr. Harvey stated that staff was struggling between adjusting the existing train schedule or attempting to grow a long distance market by looking for new customers.

Director Gage stated that he would like to see Caltrain get back the customers that were lost and then work on the new customers. Director Gage commented that it is important to build a base of customers first.

Mr. Harvey commented that he doesn't believe that changing which train originates in Gilroy will affect the ability to turn trains.

David Miller, Legal Counsel, recommended that the board consider taking the California Environmental Quality Act (CEQA) finding action first. Mr. Miller commented that at the last meeting there was a question of whether or not the actions taken on the Caltrain service levels are exempt from CEQA. Mr. Miller reported that the California Legislature has deemed it appropriate to exempt certain types of projects from CEQA compliance for a variety of reasons. The one at issue with this action is codified in section 21080(b)(10) of the Public Resources Code. What is exempt under this section is, "a project for the institution or increase of passenger or commuter services on rail or highway rights-of-way already in use, including modernization of existing stations and parking facilities." Mr. Miller stated that both the weekday and either weekend options fall within this statutory exemption. Concerning weekend service, when compared to the weekend service levels that were in effect before the construction project began, there would be an overall increase. Similarly, with the weekday service, the overall service levels would be an increase when compared to those in operation today. Mr. Miller stated that on the record there was testimony received that perhaps this statute should not be reviewed with a regional perspective but rather with the perspective of a station-by-station analysis. However, Mr. Miller commented that that was not within the intention of the legislature and since this is a regional railroad, the overall implications of service should be looked at.

Jim Janz, Atherton City Council and chair of the Atherton Caltrain Corridor Committee, stated that they do not agree with the interpretations of the CEQA issue.

Ed De Lanoy commented that he favors memory schedules and stated that it is important to have connectivity with other transit agencies.

The motion (Lloyd/Gage) to accept the authorization for the filing of a Notice of Exemption under CEQA passed unanimously.

Director Lloyd made a motion (Burns seconded) to adopt the new weekday service level as presented in the timetable proposed.

Mr. Janz stated that while the service plan is not all that Atherton wanted, they are glad that the limited service was maintained. As the economy improves, hopefully service levels can increase. Mr. Janz expressed appreciation for the six-month review and stated that he would like to be involved with the process and have the opportunity to review the data. For the weekend service, Mr. Janz reported that he supports option C and stated that Atherton will be having its own public relations campaign for the new service levels.

Jeff Carter, strongly endorsed weekend option C and urged staff to report on the feasibility of making a dedicated shuttle bus between Tamien and San Jose in order to serve Tamien. Mr. Carter reported that the CAC had an informal poll for weekend service, which yielded that the CAC was in favor of option C. On weekday service, Mr. Carter stated that there should be better service at 22nd Street.

Doug Delong, Mountain View, commended staff for their work with such a complex problem. Although riders are not getting everything that may have individually asked for, staff have given the best solution that they can under very difficult circumstances.

Director Gage stated that he will support the weekday service because staff did a great job. However, he commented that he is still concerned with adding service to line because it can become a problem when asking the public to pay more money for service while some areas have added service and other areas have service taken away.

Chair McLemore commented that he is glad to see that staff capsulated all the public input received and also was appreciative to see the improved service at the San Antonio stop in Mountain View, the service in Santa Clara with the connection to the San Jose airport and to Santa Clara University and also the service to Atherton.

The motion (Lloyd/Burns) to adopt the new weekday service level as presented in the timetable proposed passed unanimously, by roll call, and Resolution 2004-09 was adopted.

Director Hartnett made a motion (Lloyd seconded) to adopt option C for weekend service.

Greg Perry, Mountain View, stated that the simplicity, as well as higher service, of option C makes a more compelling argument when compared with option D. Even though Mr. Perry is from a county that is supporting option D, there are some things within option C that he would like the board to consider.

Francis Wong, Mountain View, recommend that the board adopt option C because it has the greatest potential to recover and grow the weekend casual service that was typical of the weekend patronage. Mr. Wong noted that option D service would be disrupted repeatedly during the baseball season because of the supplemental baseball service. Mr. Wong also hoped that there would be an opportunity to have a guaranteed connection shuttle service between Tamien and Diridon.

Margaret Okuzumi, BayRail Alliance, stated that she wished that the roll-out of the new service could have been more dramatic. However, this is a schedule of trade-offs. Ms. Okuzumi stated that the Alliance favors weekend option C because they feel it will benefit the most number of riders.

Director Burns stated that he will be supporting option C because it is clear that the public supports option C. Director Burns commented that there is a real critical need to rebuild ridership and a two hour schedule won't be able to do it and he feels that Caltrain needs to return the rail service with the best possible service, which is option C in his opinion. However, Director Burns stated that he does recognize the concerns from the Santa Clara board members and commented that he does support the inclusion of consideration of Tamien station after the six-month period and supports a shuttle service from Tamien to Diridon station.

Director Hartnett acknowledged the comments of the Santa Clara board members and that he fully supports the throughout review at the six-month mark. Director Hartnett stated that it is his hope that the board will be able to address the Tamien issue, along with other issues, as the economy picks up.

Director Gage reported that he represents the southern end of Santa Clara County, which includes South San Jose. Director Gage stated that as people move out of the valley, they still work here and need transportation to get here. Director Gage noted that the Tamien station provides free parking and the people coming from the south don't find it convenient to go into the heart of San Jose and board the train there. Director Gage reported that there have been many cuts, especially at VTA, for key services. Director Gage feels that all agencies need to work cooperatively to provide the best level of service for everybody and if that means providing service every two hours, then he feels people will adjust. However, when a high traffic area, like Tamien, is cut out, it tells the people that they don't matter. Director Gage commented that even though he understands where the other board members are coming from, if there is not service in the southern end of the county, he will recommend that they don't pay as much money because they are not getting as much service in a cooperative manner. Out of fairness to the riders throughout all counties, Director Gage will be supporting option D.

Director Lloyd commented that as he has been riding on the trains, he has been interviewing the conductors and asking them prior to the weekend shutdown, how many people were riding between San Jose and Tamien. The figure that Director Lloyd came up with is about three in each direction. Therefore, Director Lloyd feels that there should be a shuttle service to take care of those riders and he will support option C on that basis. Additionally, Director Lloyd noted that in the letter that was received from the Santa Clara directors, there was a statement saying that prior to the termination of weekend service, Caltrain operated local and skip-stop weekend service, which Director Lloyd stated was not true.

Director Yeager commented that he has a great council district in San Jose so he really understands the value of Tamien station. Additionally, the City of San Jose is adding massive high-rise housing at the station because they understand the importance of the multi-modal stop. Therefore, Director Yeager feels it is a missed opportunity for Caltrain. However, Director Yeager appreciates the six-month review and anything that can be done with a shuttle system. However, it is with disappointment that he will not be able to support the motion.

Chair McLemore stated that he stands behind the memo that was issued by the Santa Clara members although he understands that the other directors believe that efficiency is better with one-hour service continually versus a few of the stops having two-hour service. Chair McLemore feels that the extra two miles of taking Caltrain down to Tamien station is critical to the southern portion of Santa Clara County and he is interested in seeing what the numbers will show at the six-month review.

The motion (Hartnett/Lloyd) to adopt option C for weekend service passed (Gage, Yeager and McLemore dissenting) and resolution 2004-10 was adopted.

Ms. Lempert complimented staff for their work. Ms. Lempert also commended Mr. Janz from Atherton because of the promise to try to generate more riders at the Atherton stop, which Ms. Lempert feels has to be the attitude. Ms. Lempert stated that hopefully the Baby Bullet will attract new riders, as well as retain riders, and commented that she hopes that there will be a big marketing campaign for the Baby Bullet because it seems that the public doesn't know much about the service opportunities.

The motion (Gage/Hartnett) to direct staff to complete a station level ridership review and report to the board during FY 2005, including any recommended service changes and also to direct staff to proceed with FY 2005 budget proposals and, based on final budget adoption, implementation of adopted service levels passed unanimously.

Mr. Scanlon questioned if it would be the sense of the board for staff to look at a rubber tire connection to Tamien so as to not completely disenfranchise the riders at Tamien.

Chair McLemore responded that the majority of the board supports the shuttle opportunity.

Director Gage cautioned that once bus service is established, it is very difficult to get rid of it and he doesn't want the shuttle service to cloud the issue if the numbers show that there should be train service.

Mr. Scanlon commented that staff change the shuttles that support Caltrain very frequently, based on demand, so staff is experienced with shuttle services, including eliminating certain shuttles.

AUTHORIZE FILING OF FY2004 FEDERAL TRANSIT ADMINISTRATION (FTA) APPLICATIONS

April Chan, Manager of Capital Programming and Grants, was available to answer any questions.

The motion (Cisneros/Nevin) to authorize the Executive Director to submit grant application to the Federal Transit Administration (FTA) and to execute agreements required to receive $10,780,270 in Section 5307 Urbanized Area Formula Program funds, $23,252,582 in Section 5309 Capital Program funds, $17,962,000 in Surface Transportation Program/Congestion Mitigation-Air Quality (STP/CMAQ) Flex funds, and $250,000 in earmarked Transportation, Community, and System Preservation (TCSP) funds, for a total of $52,244,852 in Federal funds was adopted unanimously, by roll call, and Resolution 2004-8 was adopted.

REPORT OF LEGAL COUNSEL

None.

CORRESPONDENCE

Previously distributed.

DATE/TIME OF NEXT MEETING

Thursday, May 6, 2004, 10 a.m. at the San Mateo County Transit District Administrative Building, 1250 San Carlos Avenue, San Carlos, CA 94070.

ADJOURNED

Meeting adjourned at 11:46 a.m.